…want urgent presidential assent to NTC bill
- Bill prioritised for its great impact on economy – Senate
Exporters, importers and other investors in the maritime subsector have urged President Muhammadu Buhari to urgently consider signing the National Transport Commission Bill into law, coming four months after the Senate passed it.
The operators, in separate interviews with The Point, complained bitterly on the side effects of doing business without a regulatory body.
The stakeholders particularly lamented the worsening congestion of the Apapa seaport and the seething gridlock at the port, which is paralysing business in the maritime sector.
The NTC Bill seeks to establish a regulator for the transport industry, to be called the National Transport Commission, which is expected to set cost benchmarks for shipping lines, terminal operators, airlines, rail services and road transport service providers, among other regulatory functions.
As containers continue to dwell in seaports for more than normal time, congestion of the ports and traffic gridlock in Apapa have become inevitable, and we have all seen the toll the menace is taking on the Nigerian economy
Speaking with The Point, the shippers and maritime stakeholders called on the President to prioritise signing of the NTC Bill, as a regulator for the transport sector is badly needed for the sector to unleash its potential for massive job creation and economic diversification.
The General Manager, Duncan Bonded Terminal Tin Can Port, Lagos, Haruna Omolajomo, said an NTC would see to
the success of the several dry ports being championed by the Nigerian Shippers Council, by ensuring that seaport terminals do not become a holding bay for containers and other cargoes.
Noting that the proposed regulatory body is expected to champion the creation and regulation of a multi-modal transport system in Nigeria, Omolajomo attributed the traffic menace in Lagos ports and poor port access roads to the absence of a transport regulator.
He hinted that the cost of shipping goods from the port to anywhere in the city had more than tripled in the last few years.
He said, “As containers continue to dwell in seaports for more than normal time, congestion of the ports and traffic gridlocks in Apapa have become inevitable, and we have all seen the toll the menace is taking on the Nigerian economy.
“The other side of it is that, only five out of about 20 bonded terminals are now functional and working at only three per cent capacity utilisation. It is a pity that most of them owe banks and had sacked 95 per cent of their staff, instead of employing.
“If the NTC bill is signed into law, it will invoke the multi-modal system of transportation in Nigeria. A lot will be happening to see that the transport sector investors do well and generate employment.
“Besides, transport and shipping cost will go down, as we begin to see a tangible regulator activate competitive markets in the shipping subsector.”
Also, the President, Shippers Association, Lagos, Rev Jonathan Nicol, lauded the passage of the bill by the National Assembly and said the presence of a regulator in the transport sector would be a catalyst for the sector to grow and become a huge employer of labour, calling on President Buhari to quickly consider assenting to the bill.
“The bill will immensely regulate excesses of stakeholders in the shipping subsector, especially at attaining equitable port and transport charges. We hope that its implementation will enhance the ease of doing business in Nigeria as a whole. It is therefore, important for the Executive to give priority in signing the bill into law,” he stressed.
AN ALL-IMPORTANT BILL
Commenting on the passage of the bill by the Senate, Chairman, Joint Senate Committee of Land, Marine and Aviation Transport,
Senator Gbenga Ashafa (Lagos East Senatorial District), expressed excitement, noting that the bill was prioritised due to its “great impact on the economy.”
He said, “The National Transport Commission Bill, when signed into law, will be capable of setting the transport sector to the path of positive development.
“With this bill, we will successfully create a multi-modal transport sector and safety oversight regulator for the transport sector. This is very good for business, as it brings standard and structure to the transport sector, while also increasing the revenue of the Federal Government.”
Earlier in 2017, before the bill was passed, the Minister of Power, Works and Housing, Mr. Babatunde Fashola, had hinted on the imperative of a transport regulator.
“The question is not whether the commission is desirable, but why it has taken so long in coming,” he said.
As detailed in the NTC Bill, the commission will create an economic regulatory framework for the provision of transport services and facilities; facilitate effective competition, promote competitive market, conduct and ensure that the misuse of monopoly or non-transitory market power is prevented in the provision of transport services.
Other functions of the commission, as stipulated in Part II, Section 5, of what is to be the Act establishing it include, “Promoting private sector participation in the provision of transport services; ensuring that operators and users have equitable access to the use of transport facilities, services, channels and routes, while having regard to the level of competition in and efficiency of the regulated transport industry; and, monitoring the performance of the regulated sector.
SECTOR SHORT OF POLICIES -EXPERT
However, according to the Chairman, Technical Advisory Committee on
Railway Bill and National Transport Commission Bill in the House
of Representatives, Rowland Ataguba, the country has yet to come up with coordinate policies on the transport sector, leaving Nigerians at the mercy of operators and leaving the sector running blindly.
He said the NTC, when established, would have to come up such policies on which the sector would run.
He explained, “The National Transport Commission is the proposed new regulator for all regulated transportation systems. That’s roads, rail, maritime and aviation, under one tent. The NTC would be responsible for economic and safety regulation.
“So, the NTC will rationalise transportation regulation, enabling specialisation and cross-sector integration. Investors and operators would be clear about the rules they would be subject to and who enforces them. Users will be better protected from abuse of monopoly or dominant market power and poor service; while the government’s interest in monitoring performance of service provision is given intelligent impetus.
“Government also benefits from huge revenue generation and a one-stop shop for advisory purposes on transportation regulation. It’s a win-win, all round.”
‘IT’S GOVT’S BEST OPTION FOR JOB CREATION’
However, logistics expert, Edeme Kelikume, said a transport commission would eventually emerge as a game changer and major “value-adding agency of the government.”
The rail services specialist said, “If the Nigeria Communications Commission could become a major net contributor to the GDP, revolutionising the Global Satellite Communication licences, liberalising telephone services, and making communication accessible to all Nigerians, one could see the NTC achieving same for the transportation sector.
He added, “Every logistics chain service provider should be excited about the passage of the bill and should already be looking forward to the time when the NTC would unlock the sector, deregulate its operations and draw fresh funds into government’s coffers. That time may just be months away, as we expect President Muhammadu Buhari to sign the National Transport Commission Bill soon.”
Indeed, the passage of the bill was greeted with great enthusiasm among industry stakeholders and Nigerians in general, who are optimistic and expectant of a transport industry, well regulated and positioned to create millions of jobs.
For Chibuzo Ekwekwuo, a freight forwarder and transport expert analyst, with the industry’s vast potential as an economic catalyst, its regulation will stimulate the sector and position it for greater contribution to the Gross Domestic Product.
He said, “It is disappointing that the transport sector contributes only 1.41 per cent to Nigeria’s GDP. This is a sector that is capable of creating millions of jobs and turning the country’s economy around as it is in developed countries, which have been able to harness the sector properly.
“Therefore, the bill, when signed into law, will give the nation’s transportation sector a new face-lift, coordination and needed impetus to drive the economy.”
